For the vast majority of companies, even large companies with employees in many different countries, Bonusly works wonderfully with no changes to its default settings.

However, if your company sets budgets for rewards specifically by employee country and/or cost-of-living, then it may be worth considering if our Purchasing Power Parity (PPP) adjustment feature is right for you.

To make this determination, consider these two questions:

If your answer is "yes" to both of these questions, then enabling PPP Adjustment might be right for you.

Consider two employees in countries with significantly different costs of living, USA and India.

Under Bonusly's default setting, these two employees get "equal cash value" for their points, meaning 10 points = $1 for both of them.

If each employee saves up 100 points, they can each buy a $10 McDonald's Gift Card. In the USA, $10 can buy ~2 Big Macs. In India, $10 can buy ~5 Big Macs. In this situation, we say the employees have equal cash value for their points, but unequal purchasing power, since the India-based employee is able to purchase more Big Macs than the USA-based employee.

If PPP Adjustment is turned ON, then these Bonusly switches from "equal cash value" for points, to "equal purchasing power" for points. This means that the cash value of points is scaled to equalize the purchasing power for employees in countries with different costs of living.

In this scenario, if each employee saves up 100 points, the USA-based employee is able to purchase a $10 McDonalds gift card and buy ~2 Big Macs. The India-based employee is able to purchase a ~$4 gift card, which can also buy ~2 Big Macs. Now, the cash value of points is different based on the employee's country, but the purchasing power of those points is equalized (they can each purchase ~2 Big Macs).

To learn more about enabling PPP Adjustment for your company, please contact Bonusly support: [email protected].